New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-12-21
THE CANADIAN PACIFIC.
URITloIsING THE GOVERNMENTS OFFER.

THE DOMINION ASKING TOO MUCH IN EXCHANGE
FOR PERPETUAL GUARANTEE OF 9 PER CENT.
LONDON, Dec. 90" The Financial News" pub
fishes the following article, which is exciting
great interest. 1t is headed The Canadian
Pacific Guarantee"
"Our special New-Yorll correspondent recently
referred to current report that the Canadian
Government is about to take over the Canad an
Pacific Railway, giving as return perpetual
guarantee OF per cent. The proposal has be .
mentioned in The Times and is the subIecs
Of pamphlet Just issued by an Anglo Cara Ian
This writer strongly supports the suggestion that
the line should be acquired by the Dominion. the
government obtaining SIX distinct privileges in
exchange for the guarantee. These are the IS.
0O0.0 600 of selected land along the line the
railway monopoly rights: the free use of the tele-
graphs: the right to transport TROOPS and stores
at working cost; onehalf of the profits beyond
3 per cent. and control Of the rates.
"'Anglo-C anadian maintains strongly that both
the shareholders and the community would make
an excellent bargain on these terms. No doubt.
but 1t occurs To us that these six concessions arr
an extreme price to pay for a perpetual three
per cent guarantee The risk to the Dominion
Government rs ini!nlteSimal and the return GER
tam and rich. IL must be borne in mind tlA,t
such risk as there is TO the Dominion would NOV
come INTO operation for SIN years because the
present guarantee has that period to run Con-
se0uently the line TO be acquired would in point
of fact. not be the Canadian Pacific Railway of
to-day. but the undertaking as after SIN Years
further DEVELOPMENT.
The surrender of the monopoly rights in the
Northwest and the opening OF the whole country
TO railroad enterprise would alone almost COM
pensatc the Dominion for three per cent guaran-
Tee, chtitling, as 1t would. all immediate and eX-
tehsiVe growth OF trade and industry in Mani
toba and the Northwest, and i'll IL second degree
III Eastern Canada. Moreover. it would put an
end To such serious complications as that which
rccchtly threatened the peace of the Northwest
A"d 10 TINS the enormous advantage of the Gov
emncnt control of the rates, which would be an
essential feature OF any purchase scheme.
Anglo Canadian points out in his pamphlet
that amy preliminary loss imposed By IL general
reduction of rates to low level would be more
than rccoupcd by the relief to the pockets Of every
one using that railway and by an Instantaneous
growth of the traffic, but Auglo-Cauadian'
leaves this portion of his argument Incomplete,
emitting TO consider that low rates would thus
be forced upon the whole railway system Of
Canada, thus greatly increasing the value of the
bargain to the community. No doubt investors
in Grand Trunks would have cause for complaint,
but this would probably give additional zest TO
the enjoyment of the Canadians. The Grand
Trunk is not popular in the Dominion because Of
its fostering its United States through business to
the dctrimcnt Of Canadian shippers and because
of ITS determined opposition to the construction Of
the Canadian Pacific line.
While touching the Grand Trunk it may he
noted that Anglo-C Canadian deals shortly with
the possibility that the Grand Trunk might also
claim 10 be lror hit up: this the pampheteer dis
poses of on the simple ground that the Grand
Trunk begins ard ends in til" United States. that
its capta' per mile is three times that OF the Cana
dian Pacific: that il has no great privileges 70
exchange for a guarantee, and that il is a devol-
oprd Inc: in word, the writer sums up. there is
no paracliSm between tho two eases
what we would suggest as fair price for n
pcrpctual guarantee would he the last five OF TIE
concessions ALREADY named. that is 10 soy. m"
sharclo should retain the land rights. giving
m 70 The Government the railway monopoly The
toIccra,iS tho r;qht 20 transport troors' etr INC
ront ~ol Il rates ard orchalf of tho profits heYorI
rho 3 ror cont Or these terms the bargain wonI J
he cri,o fair 70 tho Government and not too nara
for The shareholders Tho lands would INn'Nn
70 no disposed of rs bonus n The shar"'ol'' -
after being put into a marketable form ~ t'mpp
nrcsnrt and nroSnectiVc settlers 70 purchase oven
RI q valuation 81 ono dollar per arrc lns,'a' on
from thrcc 10 eight dollars ut which S'eS a,n
o-.uoI,,- bciro made Tho land warrants W., ~
oivo hnnus 81 twenty shNingS nor share. -, IS
,,-onl1 ,-olorlv 10 realized IN fcw N"'fN W
tl;S done shareholders might fairly "S''nHau wv
r~oeoo. market vnlnc ~ n Dcr ccnf p'rp'','n'
,,orartnc a, g. surplus RIGHTS stock lsSlcH S,'a
,+,1,. ~ = and lend warrants NJ =" or ~
shN;rgS in all per shprr